defense contractors, private companies that work for the pentagon. one democratic congressman in virginia whose district may be hit hardest says it could mean layoffs. >> the large defense contractors will be okay. they have significant cash reserves, most of them. smaller contractors would have trouble getting their lines of credit extended, trouble keeping their employees if they can't be assured of continued employment. >> how did we get to this point? in the budget battles of 2011 these spending cuts were put in as an unthinkable trigger to force lawmakers to find a way to cut spending. so far they haven't done it so here we are. >> to make a particularly unpalatable the white house insisted on a coming out of the department of defense budget which many conservatives think is much too harsh and the president's on secretary of defense's would allow the military. deliberately designed to be an aggressive cut on thh military budgets so it wouldn't happen and that is the possibility that it will. >> the only way to avoid these cats being implemented